This article has been updated to reflect the current new Series I bond rates for November, 2024 to May, 2025 period.The new I bond rate has been set at a composite 3.11% (down from 4.28% APR in the prior 6-month period). Due to a declining inflation rate, this current rate has dip...
The latest inflation-adjusted rate of 3.38% annualized was determined based on the increase in the CPI-U from 296.808 in September 2022 to 301.836 in March 2023, resulting in a six-month change of 1.69%. The Treasury’s formula to calculate an I bond’s overall composite rate ...
As for the next November to April period, the Treasury will use the two CPI’s from March (312.332) and September (not yet known) to calculate the next semiannual inflation rate. It and the Treasury’s fixed rate, if any, will get plugged into the formula to set the I bond’s next ...
The fixed portion of the I bond rate remains the same for investors after purchase. The variable rate resets every six months starting on the investor’s I bond purchase date, not when the Treasury announces new rates. You can find the rate by purchase datehere. ...
November 2022 rates officially announced.May 2022 rate confirmed at 9.62%.11/1/2022 press release. The variable inflation-indexed rate for I bonds bought from November 2022 through April 2023 will indeed be 6.48% as predicted. Every single I bond will also earn this rate eventually for 6 mont...
For example, any I bond issued between November 2024 and May 2025 earns interest at 3.11 percent annually. That means even if you purchase the bond in April, you’ll still earn that rate for a full six months. Then your bond will adjust to whatever new rate is announced in April. The...
For example, when the new I bond was announced for November 2023, its fixed rate was 1.3%, the highest fixed rate for iBonds in years, and 0.3% higher than the 0.9% fixed rate for bonds purchased between May 2023 and October 2023. ...
The interest on I bonds is a combination of a fixed rate—guaranteed for as long as you own the bond—and the inflation rate, which changes every six months. The fixed-rate component was bumped up to 1.3% in the November 2023 reset. The six-month inflation component is 1.48%. But when...
But what has an even bigger impact this cycle is that anyone buying a new I bond between November 2023 and May 2024 will receive a fixed-rate component of 1.30%.2That is notably higher than the 0.00% fixed rate assigned to I bonds purchased last year, and explains why new I b...
In addition to the fixed interest rate, the variable rate is announced twice a year in May and November and is determined by changes to the Consumer Price Index (CPI), which is used to gauge inflation in the U.S. economy. The change in the inflation rate is applied to the bond every...